Source BS
NEW YORK, November 22, 2025 — Tata Consultancy Services (TCS), India’s largest IT services firm, has suffered a significant legal setback in the United States after the Fifth Circuit Court of Appeals upheld a $194 million damages ruling against the company in a high-profile trade secrets lawsuit filed by DXC Technology Company (formerly Computer Sciences Corporation, or CSC).
The ruling, issued late on November 21, 2025, affirmed the original District Court’s decision on the monetary damages TCS is liable to pay. The total liability stands at approximately $194.2 million, which breaks down as:
$56.1 million in compensatory damages.
$112.3 million in exemplary (punitive) damages.
$25.8 million in prejudgment interest.
Appeals Court Review and Injunction Vacated
While upholding the damages, the Appeals Court did provide a minor reprieve by vacating an earlier injunction that had been imposed on TCS. The court has remanded this injunction back to the District Court for reassessment in line with the appellate court’s directions. This means the terms of the non-monetary restrictions on TCS relating to the proprietary software will be reviewed.
In a regulatory filing, TCS acknowledged the adverse ruling, stating, “The United States Court of Appeals for the Fifth Circuit has issued an adverse ruling on November 21, 2025 (evening US time), in the above matter and confirmed the District Court decision on damages.”
The Core Allegation: Misappropriation of Software Secrets
The lawsuit, originally filed by CSC in 2019, centered on allegations that TCS misappropriated proprietary software trade secrets related to CSC’s insurance platforms, specifically the VantageOne and CyberLife software.
The complaint alleged that after TCS secured a $2 billion deal with a Transamerica subsidiary, it hired approximately 2,200 Transamerica employees. These employees, who had access to the CSC software for policy administration, allegedly allowed TCS to misuse the confidential information, including source code, to develop a competing life insurance platform within its own TCS BaNCS software.
A US District Court had previously found TCS liable for the misappropriation of these trade secrets in June 2024, leading to the initial imposition of the $194 million judgment.
TCS Vows to Continue Legal Fight
TCS has maintained that it has strong arguments against the judgment and is not accepting the ruling as final.
The company stated it is currently “evaluating all available legal options,” which include seeking a review and appeal before the appropriate courts, such as a possible appeal to the US Supreme Court. Despite the major financial blow, TCS has reiterated its belief that the judgment will “not have a major adverse impact on its financials and operations.”
This ruling marks another significant legal challenge for the Indian IT giant in the US, following a separate, long-running trade secrets dispute with Epic Systems, where a different punitive damages award was also eventually confirmed by the US Supreme Court.
